Taiwanese LED Packaging Manufacturers Market Share in China Eroded by East Asia Competitors, says Trendforce

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China LED packaging market scale reached US $7.2 billion in 2013, according to the latest China LED package market report from LEDinside, a division of research organization Trendforce. China become a prime market for global LED packaging manufacturers, who are speeding up efforts to acquire bigger market share. Leading Chinese manufacturers are also maintain fast development rates, increasing restructure pace is also scaling up industry concentration in the country. Chinese manufacturers’ actions have impacted Taiwanese manufacturers’ Chinese market share, which slid to 9% as a result. Raising product competitiveness has become an urgent matter for manufacturers.

(LEDinside)

China’s LED packaging market mainly consists of three segments: Chinese, Taiwanese, and international manufacturers, said LEDinside. Domestic Chinese packaging manufacturers make up the largest group with around 63 percent market share, followed by Taiwanese companies, while large international manufacturers with patent advantages have clinched 28% market share.  International manufactures have obtained a large amount of orders from lighting manufacturers and have been the largest beneficiaries.

Taiwanese manufacturers are gradually being replaced by Chinese manufacturers, who have been rapidly developing over the past few years. Chinese manufacturers’ total revenue in 2013 grew 15 percent YoY to US $4.5 billion, but market share dipped slightly by 2 percent. Steep product price plunges have resulted in underperforming revenue growth rates. However, Chinese manufacturers including MLS Lighting, Nationstar, Hongli Opto-Electronic, Refond Optoelectronics and others revenue growth still outperformed industry average, reflecting rapid industry restructuring, and increasing market concentration. 

Caving under pressure from Chinese manufacturer developments, Taiwanese LED packaging manufacturers revenue performances have fell. Taiwanese manufacturers’ revenues from the China region declined 1% in 2013 to US $638 million, while market share downed to 9 percent in 2013 from 11 percent in 2012.

In stark contrast, European, U.S., Japanese, and Korean LED package manufacturers’ revenue in the Chinese market was up 40% to US $2 billion in 2013 compared to the year before. Among them, Korean manufacturer Seoul Semiconductor and Japanese manufacturer Nichia showed the best performance. China is currently the largest LED lighting end product exporter, but does not have much advantage overseas because of patent issues, and higher LED lighting component and performance standards in developed country markets including Japan, Europe, and U.S. Therefore, international lighting manufacturers continue to dominate high-end lighting component market. China is also the largest LED end product OEM, with many international lighting manufacturers seeking for OEMs in China. International LED packaging manufacturers are further expanding in the Chinese market, which in turn will drive up revenue proportions. 

 

Chapter One: Industry Chain Overview

Chapter Two: China LED Industry Overview

Chapter Three: China LED Package Industry Overview

Chapter Four: Major Chinese LED Package Manufacturers

Chapter Five: International LED Enterprises Investment And Business in China

Chapter Six: Important Supporting Industries Related to LED Package Industry

Chapter Seven: Competitiveness of Chinese LED Package Industry

Chapter Eight: New LED Packaging Technology and Hot Topics

Chapter Nine: Conclusions and Investment Suggestions

 

Published Date: May 31 2014

Language: English

Format: Electronics

Page: 224

 

If you would like to know more details , please contact:

Joanne Wu    +886-2-7702-6888 ext. 972      joannewu@ledinside.com